Policy summersault stifling economy, experts lament
Financial experts have lamented the impacts of inconsistent policies on growth, urging government to stimulate growth with supportive policies.
Chairman, Board of Directors, Mainstreet Microfinance Bank, Dr. Dan Abu, stated that issues around policy summersaults have rendered lots of businesses bankrupt.
Speaking at the official opening of the Corporate Head Office of Mainstreet Microfinance Bank in Victoria Island, Abu, however, expressed optimism that there is hope for the economy if necessary measures were in place.
Besides, he identified naira instability, insecurity and infrastructure deficit as part of the challenges confronting financial institutions, while calling for intervention from the government.
He said: “Indeed the challenges in the sector have been many and some of them include changes in policies resulting in policy somersault, instability of naira.
Insecurity pervading the country has also added a burden on banks and other financial institutions as we have to spend heavily on security. Also, the area of infrastructures deficit, such as power supply.
The bank and every other business are spending very high to complement the efforts of public utility firms.
“But we must never give up. We should have hope that our economy will grow for the better. Government should come to the aid of the private sector by having long-term policies and minimize the number of policy somersaults that we have. They also need to invest more in infrastructures so that power can be more available for the use of the private sector and the citizens.”
Speaking on the impact Mainstreet MFB has on the people; “one of the key aims or objectives of microfinance banks is to help in poverty reduction. Through our microloans, we were able to lift off many families out of poverty. Through our microloans we can give empowerment to people that find it difficult to relate to the bigger banks, one of the things we are focused on is financial inclusion, we give a lot of loans and we have several programs for women and when you lift a woman out of poverty you are lifting a family out of poverty. We are indeed very strong in corporate social responsibility.”
On his part, the Managing Director and Chief Executive Officer (CEO) Mainstreet bank, Adegoke Adegbami noted that policy summersault has played a negative role in the economic activities of the country.
“It is negative in the sense that just when people try to key into a policy and then it is just changed, this is very bad for the economy. What helps businesses are that people can plan based on the policies of government and position themselves well, but when there is policy somersault, the system becomes very unpredictable and when you have an unpredictable system, it affects us who lend the more, it will affect us as an organisation but it will affect the people that we finance, and when it affects them they have problems being able to pay their loans back as at when due.”